Thursday, April 12, 2012

HIGH COURT UPHOLD BENCKISER'S SHARE CAPITAL SELECTIVE REDUCTION

The Delhi High Court has dismissed a plea by Reckitt Benckiser (India) Ltd's shareholder
challenging the firm's decision to reduce its share capital on grounds of want of any infirmity in
the decision of the firm, noted for products like Dettol and Strepsils.Petitioner had contended in his pleas that reduction of share capital of the firm was nothing but "forcible acquisition" of shares by public as the stake of the promoter group was not touched for the propose reduction. The high court had rejected his contentions saying that section 100 of the Companies Act 1956; expressly permit a firm, if authorized by its article of association, to reduce its share capital.

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